Post on 22-Jan-2018
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InstrumentSales.com
F l e x i b i l i t y | E x p e r i e n c eTr a n s i t i o n E x p e r t i s e | F o c u s
Capabilities Summary
ManufactureReman
2Page
ISS is a market leader in the electro-mechanical manufacturing and remanufacturing business. However, there is more to our company. We operate within a Total Cost Management culture. It is not enough to have the very lowest labor rate among our peers (although we certainly do). It is not enough to be a leader in Ship-Direct fill rates, or to have outstanding scores by our dealer partners for quality, delivery and customer service.
At our core we are an incredibly flexible company. We have built support structures throughout the organization focused on adaptation. That is because we want to offer options to clients with electrical-mechanical parts reaching the end of the product life cycle. Those solutions may include Remanufacture, Repair & Return or New Manufacture, or a blend of those three.
We are also flexible in managing new projects. The quality, speed and cost containment at which we remanufacture is matched by the quality, speed and cost containment at which we manage these types of project transitions.
Our consistent track record of success in transitioning products is a testimony to our culture of flexibility.
Physical Flexibility:
• ISS currently occupies 130,211 square feet over four locations. We have reserved 31% of that space to provide flexibility for future growth without significant changes in footprint.
• ISS locations are physically diversified in the event of disaster. Because we have locations in Portland, Seattle, Denver and Phoenix, we can coordinate new programs across multiple branches at request. Thus our clients can receive the convenience of buying from a single source, but benefit from the same catastrophic risk reduction of multiple vendors.
Key Statistics
Quality Certifications: ISO9001:2008 (Kent, Denver, Phoenix) ISO9001:2008; ISO/TS 16949:2009 Standard (Portland)
Number employees: 150
2009 reman throughput: 50,531
2008 reman throughput: 64,373
2007 reman throughput: 92,452
Maximum capacity without expanding facilities: 254,000
Facility locations: Portland, Kent (Seattle), Denver, Phoenix
Corporate/Manufacturing Headquarters: Portland
Reman Headquarters: Kent
Founded: 1949
Product expertise: Instrumentation, Audio, Fuel Systems, HVAC, Switchgear, Sensors and Body Electronics
Ownership: Privately Owned
Customer Diversification: 5,000 customers spread over 15 countries. Includes major vehicle manufacturers, specialty manufacturers, dealerships, jobber shops and repair shops.
Engineering Staff On-Site: Mechanical, Electrical, Software and Production Engineering; SolidWorks work stations
EDI Capable: Yes
Financial Flexibility
• ISS has successfully financed a tripling in growth in business over the last decade while never drawing more than 20% of its line of credit. ISS has the profitability, credit lines and outside financial backing to continue funding growth into the future.
Global Sourcing Manufacturing Distribution
A b o u t I S S : F l e x i b i l i t y
Engineering
Confidential
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Reman Process Flexibility:
• ISS has developed its own proprietary software for managing the reman process. Therefore any changes requested by a client can quickly be implemented.
• ISS has also developed its own internal software to interact with the client’s system. Because data is not manually entered, there is less chance for human error. This flexibility has allowed ISS to be the only instrument reman center to go completely paperless with Delphi.
• Changes in testing parameters can be made on the fly through the use of trained personnel and user-friendly test equipment.
• ISS also has state-of-the-art high-volume testing processes, including Vision Systems.
• ISS maintains strong relationships with equipment builders who use off-the-shelf parts, allowing for quick modification.
Reman Personnel Flexibility:
• ISS has processes in place to regularly adjust staff to accommodate 30-40% variance between slow and peak season. ISS cross-trains every member of our reman center.
• The technician staff at our Kent facility average 7.3 years of experience. Non-tech staff average 9.5 years of experience. We feel this extensive experience gives us a bedrock of talent to allow for easy expansion.
• Our Reman benches are modular in design, which give us the ability to quickly reorganize to fit new product.
Engineering Flexibility:
• ISS has a staff of electrical, mechanical, manufacturing, and quality engineers on-site in our Portland location that uses Solidworks to develop custom engineering solutions for our clients.
Production Flexibility:
• ISS has the tooling, forecasting, purchasing, engineering, and supplier management expertise to scale production at any level, from dozens of units to tens of thousands.
Subassembly Flexibility:
• ISS has the staff and facilities in place to manage limited-production subassembly in our Portland Seattle locations.
Delivery Flexibility:
• We offer a variety of product delivery options. Ask us for more information:
Remanufacturing Warranty Exchange Customer Service
R e m a n u f a c t u r i n g M a n u f a c t u r i n g
Vehicle Manufacturer Warehouse
Vehicle Manufacturer
Distribution
Confidential
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When component parts are not available to supply reman, we can make them
ourselves.
RemanISS Remanufacture is appropriate when:
• The Product mix is too high and volume too low to be cost effective to manufacture.
• The Product cost is significant and hence generates high Cost of Ownership to the End Customer.
• Product component availability becomes a concern for past design strategy.
• There are environmental concerns.
Conclusion
• ISS is a Market Leader in Reman and continues to score highly by our customers’ benchmarks.
• Reman is good for the environment.
• ISS has made significant investments in people, infrastructure and processes to ensure that our Reman Facilities are World Class.
R e m a n & M a n u f a c t u r i n g E x p e r i e n c eWhen it is not feasible or practical for you to manufacture an
Electro-mechanical Assembly, ISS can offer two options that
minimize both Cost of Ownership to the end Customer and
Total Cost Management for your comapany.
Sample products we currently remanufacture
Confidential
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ManufactureISS Manufacture is appropriate when:
• The Product mix is too high and volume too low to be cost effective for your company to manufacture.
• It is a service part, and the cost is minimal and hence generates a low Cost of Ownership to the end Customer.
• The Product is considered ‘non-strategic’ to your company’s Core Business Strategy.
Conclusion
• ISS has developed its Business Model to focus on low volume/high mix manufacturing. This allows ISS to be more flexible and cost effective to support such programs.
• By allowing ISS to focus on these non-strategic parts, your company’s engineers, purchasers and logistics teams are freed to focus on your company’s core competencies.
R e m a n & M a n u f a c t u r i n g E x p e r i e n c eWhen it is not feasible or practical for you to manufacture an
Electro-mechanical Assembly, ISS can offer two options that
minimize both Cost of Ownership to the end Customer and
Total Cost Management for your comapany.
Sample products we currently manufacture
Confidential
A critical part of our drive toward Total Cost Management is our measures. We prominently post measures such as those shown at the left, which include costs, backlogs, and our performance against other reman centers. Because of this, we consistently outperform the other shops in cost (labor + parts) and are always among the leaders in speed of Ship Direct Delivery.
* Sales and other data deleted and altered in this chart to maintain confidentiality.
Reduce Process Costs & Improve Process Quality
ISS has developed our own extensive proprietary reman software system that gives us a major advantage over other reman centers:
• Our system will not allow operators to exceed cost restriction parameters defined by ISS or the client without approval (see example at left).
• Because all products are serialized, we track every part and employee that interacts with a product at every stage of the reman process. This accountability eliminates costly recurring errors.
• If there are bulletins issued on a given product, our software can require the operator to perform the modification before proceeding. This cuts time and eliminates reman returns.
• We create BOM’s for individual units, so every time a part needs replacing we automatically pull related parts. This reduces picking times and eliminates costly mistakes.
• We manage a rigorous process for tracking units failed in the field. Any product that returns within a year of reman automatically undergoes a full diagnostic test. A separate log is maintained to identify trends between returned products.
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Our decades of experience in remanufacturing have allowed us to really drive Total Cost Management. We know the benchmarks to reach for, and we know the best processes to reach them. The following are just a few areas where our experience can help your company drive down cost, improve quality and speed time to market.
R e m a n E x p e r i e n c e
Maximum value of parts allowed.
Current dollar value of parts.
Message warning operator job exceeds price limits, and must receive supervisor approval for override.
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Reduce Tooling Costs & Speeding Up Re-Tooling
We have lengthy experience in moving tooling from high-volume manufacturers to low volume suppliers. Our engineers, purchasers and suppliers all operate with the mind set of reducing costs for low-volume tooling. We can generate new tooling for components as quickly as 12-16 weeks.
Reduce Material Management Costs
Because ISS has managed end-of-life-cycle parts for decades, we have developed nimble processes to carefully balance customer demand with small-volume manufacturing and inventorying. Our systems reduce inventory carrying costs, and allow our clients to pay for parts more closely to when they are needed.
Because our processes are based on low volume, our equipment could significantly reduce testing costs and while speeding throughput.
Reman
Ship to customer
Standard Reman Model
Core
Remanned Inventory
Reman
Ship to customer
ISS LeanReman Model
Core
Remanned Inventory
Raw Core Inventory
Inventory sits without remanufacturing until ISS projects a seasonal need
for product.
Reduce Core Management Costs
Our core management program tracks demand and supply for finished product. Cores that are not currently needed are stored without addition of any parts or labor (as Raw Cores). If demand increases, those Raw Cores are then remanned. This lean system means clients only pay for remanufacturing it actually needs, minimizing inventory and labor costs.
RemanR e m a n E x p e r i e n c e
Confidential
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Instrument cluster in tester.
Computer evaluating and passing cluster.
Every product is tracked by bar code throughout the reman process.
Door Door
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R e m a n H Q
The current Kent Reman Facility floor plan.
Kent (Seattle), Washington
Along with our Reman HQ, we have three
other locations that can ramp up for new
reman work.
Confidential
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Automated packaging.
Instrument cluster in tester.
Computer evaluating and passing cluster.
Extended Test Fixture: Allows for long-term testing for complaints that can not be bench duplicated.
Reman
Confidential
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E n g i n e e r i n g F l e x i b i l i t y
ISS can understand such a diverse array of products because we have a staff of electrical, mechanical, software, manufacturing, validation and quality engineers in house. We also use contract engineering resources as needed. We have dozens of other past model service programs that we support with complete turnkey engineering services.
In the event that a critical component goes end of life ISS can assume full responsibility for all engineering and quality functions.
For example, on our other programs if a component becomes unavailable ISS initiates the redesign of the board to accommodate a new component and follows that process all the way through from initial design to validation testing and finally to Product Warrant Submission.
Confidential
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ISS engineering is focused on assisting our customers solve any of their product engineering problems in a timely manner. We can take a customer’s existing product and build it exactly to their print.
If there are quality problems with their current product, we have the expertise to trouble shoot those issues and ensure they aren’t present when we start production.
If there are no prints or specifications available, we have the capabilities to test and reverse engineer any product based off samples.
We work with our customer, their current vendors, and many of our internal/external resources to help transition and realize these programs very quickly.
Our engineering team understands every step of the product realization process. We meet all of our customer’s critical product characteristics and documentation requests. We have in-house Solidworks 3D modeling and prototyping capabilities. We have extensive knowledge of manufacturing processes. We are able to transfer, consolidate, improve, or build new tooling, test fixtures, jigs, and complete work cells. This work is done domestically at our ISS facilities.
Before any products are sent to the customer ISS engineering will work with the customer to determine a proper validation/verification plan, and we will ensure that the product passes all tests with flying colors. ISS is able to expedite this whole realization process while still meeting the strictest quality and documentation requirements.
We have a staff
of electrical,
mechanical, software,
manufacturing,
validation and quality
engineers in-house.
They can operate as
extensions of your own
engineering team.
ManufactureE n g i n e e r i n g F l e x i b i l i t y
Confidential
Manufacturing to the TS Standard:
Every part that ISS manufactures must adhere to our ISO/TS 16949:2009-based quality processes. Every item is meticulously documented in our NPI (New Product Introduction) Process to ensure that everything we make consistently meets or exceeds the form, fit and function of the OE part we are designing from. Every new client will receive the exact same level of consistent quality that we provide to GM at a Tier-One level.
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ISS can help streamline every stage of product realization.
S o u r c i n g E x p e r i e n c e
Through the years ISS has developed extensive experience identifying, qualifying, auditing, and managing suppliers that can deliver the breadth, quality and low cost that your company seeks. We now have trusted relationships with dozens of proven suppliers who can deliver scalable volumes, from a few hundred to a hundred thousand.
Source Management:
ISS can manage every stage of the manufacturing process, including:
• Physically visiting and inspecting the manufacturing plant before production, including inspecting plant’s current product samples
• Inspecting and verifying prototype product before production
• Providing the plant specific instruction to ensure production meets our quality standards
• Inspecting and verifying initial production run for product quality
• Performing return audits to the plant to continually verify production meets our standards
• Ensuring all packaging meets the client’s requirements
• Performing final quality inspection at our Portland or Kent ISS facility to ensure the parts meet our TS standards
ISS can be a
primary or
supplementary
source for virtually
any low volume/
high mix electro-
mechanical part
that your company
needs.
Confidential
Our facilities at two of the seven largest ports on the West Coast make us the perfect strategic location for delivering product sourced from Eastern Asia. Our clients have been able to save time and improve quality by relying on us and our decades-tested network of overseas suppliers. Thanks to the specialized expertise we have developed, we offer the best pricing, selection, quality and speed to market possible.
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ManufactureS o u r c i n g E x p e r i e n c e
ISS has the supplier network, Engineering capability, re-validation expertise and experience to source every component typically utilized in Electronic and Electro-mechanical Automotive Products.
This includes complete Printed Circuit Boards (PCB’s) and component Integrated Circuits (IC’s).
Confidential
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Samples of tooling from our in-house tooling facility that ISS uses to speed the process of manufacturing. Because ISS performs this tool making in-house, it gives us the flexibility to shave off weeks from standard tooling modification and production for our clients.
M a n u f a c t u r i n g H QC o r p o r a t e H Q
Portland, Oregon
Confidential
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This location specializes in sourcing, importing, engineering, manufacturing, distrubtion and logistics.
• On-site engineering staff
• On-site tool manufacturing facilities
• On-site sourcing and logistics staff
• On-site incoming inspection capabilities for all foreign-sourced product
• EDI fulfillment capabilities
• Sub-assembly capabilities
• ISO9001:2008; ISO/TS 16949:2009 Standard
Manufacture
Instrument being assembled in our Portland facility for Harley Davidson.
Confidential
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Over the years, ISS has managed a number of major product transitions for GM and its Tier-One suppliers. The following are some examples:
• ISS manufactures under a license agreement thousands of Genuine GM Parts that it ships directly to distributors.
• ISS remanufactures tens of thousands of radios and instrument clusters under warranty for GM/Delphi. Going from one of nearly a hundred reman centers in the 1990’s, ISS has adapted its processes so that it is now one of seven. It consistently ranks highest among those centers in a number of key benchmarks, including lowest cost.
• ISS manufactures thousands of fuel sensors that ship directly to GM dealerships via orders processed through EDI.
• ISS also manufactures and ships thousands of fuel sensors that ship via pallet directly to GM customers.
T r a n s i t i o n E x p e r t i s eTransitioning an existing product line is much different from launching a new program. It involves everything from managing complicated relationships with other vendors to re-balancing inventories to re-tooling to reorganizing staff, plus a hundred other challenges.
We have helped manufacturers through the transition process numerous times. Although each time is different, our experience has helped us learn how to ask the right questions and develop the right processes to optimize Total Cost Management. We use this “Transition Template” for all business transfers.
For example, if a client asks us for remanufacturing services, we ask them if they also want to cut costs and simplify part sourcing, warranty exchange, and perhaps distribution.
We work closely with your tier-one and tier-two suppliers, buyers, planners, logistics team and engineers to make it easy. It’s second nature to us—we too are tier-one and tier-two suppliers, and we have our own buyers, planners, logistics team and engineers on staff fully trained in product transitions.
As a result, every major product transition we have managed in the past decade has been a success.
ISS uses a number of project management tools to coordinate the transition of a product line. This is an actual GAANT chart from a past project.
Confidential
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Over the years, ISS has managed a number of major product transitions for GM and its Tier-One suppliers. The following are some examples:
• ISS manufactures under a license agreement thousands of Genuine GM Parts that it ships directly to distributors.
• ISS remanufactures tens of thousands of radios and instrument clusters under warranty for GM/Delphi. Going from one of nearly a hundred reman centers in the 1990’s, ISS has adapted its processes so that it is now one of seven. It consistently ranks highest among those centers in a number of key benchmarks, including lowest cost.
• ISS manufactures thousands of fuel sensors that ship directly to GM dealerships via orders processed through EDI.
• ISS also manufactures and ships thousands of fuel sensors that ship via pallet directly to GM customers.
Recent SuccessesIn the past year ISS has been awarded several large contracts from major vehicle and parts manufacturers. Although we are not at liberty to disclose details, the volume is substantial. They involve the remanufacture and manufacture of a variety of:
• Instrumentation • HVAC controls
• Electronic control modules • Fuel systems
ISS was selected in each case against the best competitors in the business on the basis of:
• Financial Viability • Product Quality
• Organizational Depth • Delivery Lead Times
• Reman Capabilities • IT Infrastructure
• Reporting & Data Management • Pricing
ISS knows
how to push
through product
transitions.
T r a n s i t i o n E x p e r t i s eISS uses a number of project management tools to coordinate the transition of a product line. This is an actual GAANT chart from a past project.
Confidential
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P o t e n t i a l P r o g r a m s
Wire Harness
Power Antenna
Fuel Delivery Module
Electronic Connectors & Connector Housings
Fuel Pump
Fuel Sender
PRNDL Indicator
Interior Dash & Console Switches
LCD DisplayHigh-Content
Rear View Mirror
BodyControl Module
Power Window Switch
HVAC Control
Confidential
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Reman ManufactureP o t e n t i a l P r o g r a m s
Pressure Sensors Pickup Coil
Audio
Distributor Cap
Ignition Coil
Interior Dash & Console Switches
Operator Interface System
Coolant Level Probe
Instrument Cluster (Complete) Round Case Gauge Speedometer , Tachometer, Other
Instrument Cluster Components Air Cores (One Inch & Mini) Air PressureAmmeterElectrical & Mech GaugesFuel LevelMechanical OdometerOil PressureOil TemperaturePointersReplacement Lenses SpeedometerTachometerVoltmeterWater Temperature
Temperature Sensor
Let’s talk about
where you see
the biggest
opportunities
to partner with
ISS to supply
high mix/low
volume electro-
mechanical parts
for manufacture
or reman.
Confidential
Corporate Headquarters Portland, Oregon
Confidential
InstrumentSales.com
Portland • Seattle • Denver • Phoenix • Detroit
F l e x i b i l i t y | E x p e r i e n c eTr a n s i t i o n E x p e r t i s e | F o c u s
Since 1949 ISS has maintained a business strategy that is focused on instrumentation, sensors, and other mechanical-electronic equipment. It is the only thing we do. That laser-like focus is the reason we are able to offer our unique levels of flexibility, experience, and product transition expertise. Our business strategy is to do one kind of product and do it extremely well, delivering it in whatever way our clients need.
Because of that focus, we make it easy for companies like yours.
Value Add(Reman or
Engineering orSourcing or
Manufacturing, etc)
Outputto
market
Electrical-mechanical
parts
Engineering
ISS
Sourcing Manu-facturing
Distribution Reman & Exchange
Typical Parts Supplier
Unrelated parts
Unrelated parts
Unrelated parts
Unrelated parts
Outputto
market
Outputto
market
Outputto
market
Outputto
market
Outputto
market
Key Contacts
Scott HaugenPresident Portland, ORshaugen@instrumentsales.com 800-333-7976 x358
Lawrance Griffiths Director Business Development Detroit, MIlgriffiths@instrumentsales.com 248-910-1581
Jeff EilersProduct Realization Manager Portland, ORjeilers@instrumentsales.com 800-333-7976 x337
F o c u s